Second round early release hitting some funds more than others

Ten superannuation funds have done most of the heavy lifting in terms of the Government’s hardship superannuation early release scheme, but new trends appear to be arising with respect to the volume of demands on those funds in the second tranche.

Data released by the Australian Prudential Regulation Authority (APRA) has revealed that Australian Super continues to face heavy second tranche demand with 109,974 members seeking to make a second withdrawal alongside continuing heavy demand on HostPlus (67,085) and HESTA (36,031), and National Australia Bank’s NULIS (30,420), Sunsuper (91,277), REST (71,044)

However, this compares to AMP Superannuation which, according to the APRA data and in what be a data collection anomaly, appeared to meet no repeat applications and a number of other retail funds which appeared to experience a lower rate of second round demand than some of their industry funds peers.

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Colonial First State has so far registered 19,619 second round applications while BT Funds Management recorded 39,488.

Superannuation fund executives have told Money Management that while there was a surge in second round applications in the first week of July, this appeared to have flattened out.

They noted, however, the likelihood of a third surge tied to the Government’s changes to JobKeeper and JobSeeker arrangements.

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Part of the reason union funds have had such a high rate of withdrawals is they actively tried to discourage their members from withdrawing. This self interested PR campaign backfired, by raising awareness of the withdrawal opportunity for many members who otherwise wouldn't have realised, and exposing the funds' desire to not let go of their member's money.

Bring out the violins. The Union based Industry funds have billions of new money being thrown at them year after year, regardless. Maybe more of their fund members are starting to work out they are being fleeced with intrafund advice fees (that they haven't provided informed consent for, & cannot opt out of) and they want out.

Now would be the perfect time to make Superannuation voluntary. That would put $43B per year back into the economy and give every worker a 9.5% payrise. Stop new employees being joined up to this ponzi scheme, and allow members to withdraw a certain amount per year. I know this sounds a big move but we have people who are desperate to keep a roof over their family's heads now and do not want to think about a holiday in the Bahamas in 30 years time. They can join a voluntary super fund when the family has grown up. It's a worry when we hear financial firm managers saying how much worse off those who chose to withdraw $10k will be in 30 years time. If they can't see that members are being taken for a ride with Super funds I doubt they can count to ten let alone manage someones future money. They are certainly "all in this together". Labor, Unions and Funds. It has to stop. 27 funds managers on $1m, boards of directors, investment companies, donations to unions etc. All out of members money. Super funds know they are fighting for existence. Now we have Greg Combet saying funds will provide 200,000 jobs. It's time for Australians to know the truth. We need to make this happen.

Super costs the tax payer MORE than the aged pension, through tax avoidance, as per recent Federal Treasury modelling, at a level of 1% of GDP.

This trend is set to continue for the next 40 years.

These tax concessions are taken up primarily (99% with liquid assets over $1mil) by the rich.

I.e. super costs more than the pension and benifiting mostly millionaire tax avoiders. Oh, and the fund managers who charge massive rates for money for jam.

Broken, stupid system, mandatory contributions component needs getting rid of, asap.

I will decide what I will do with my own money thank you very much.

Super costs the taxpayer much less than the tax avoided by special treatment of residential property. Negative gearing and the primary residence unlimited CGT exemption are Australia's biggest tax rorts by far. Not only do they deprive the community of funds for social purposes, they also deprive lots of young people of the opportunity to own a home. Any reduction in super tax benefits will just see more money flow into oversized houses and overpriced rental properties.

Exactly Fred. We need to decide how we'll save, how much and when. And more than anything we need to have control over who it goes to if we die before retirement. I can't believe Trustees, CEO's and anyone associated with Superannuation think they can just take, in my son's case, $213,000, and give it to someone else. If a bank manager did that banks would all be closed. Dead in the water. These turkeys are so arrogant they think they'll do what is "fair". It has happened to so many families and will continue unless we say enough is ennough. These funds will be the only lenders for mortgages in yrs to come, control everyones finances. Take ME bank (run by super funds) re arranging peoples money so they can't access it. If we don't stop this now, we can expect more and worse as the funds become more powerful with more of our money.

That is a complete and utter myth.

Constant modeling has confirmed the cost of the Age Pension can only be sustainable with our aging population due to the superannuation system moving more people from a full pension to a part pension due to higher personal wealth.

Just about every person I see that says 'Ill save myself, sUpEr iS a ScAm' end up saving next to nothing, and being 100% reliant on the taxpayer in future.

In many cases, compulsory super is the only money people actually save and that's only because they are forced to.

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